Purchase Requisition vs Purchase Order: Clear Difference

By Farasat Abbas Naqvi · Published June 20, 2026

A purchase requisition (PR) and a purchase order (PO) are two steps in the same buying process — but they go to different people and do different jobs.

Purchase requisition (PR)

An internal request. An employee asks the company to buy something. It is routed for approval (manager, finance, procurement) and never leaves the organization.

Purchase order (PO)

An external document. Once the PR is approved, procurement issues a PO to the vendor authorizing the purchase and committing the buyer to payment on the agreed terms.

Typical flow

Requester fills a PR (item, quantity, justification, cost center).
Manager approves.
Finance / procurement approves the budget.
Procurement converts the PR into a PO and sends it to the vendor.
Vendor ships goods or delivers services.
AP three-way-matches PO ↔ goods receipt ↔ invoice before paying.

When you need both

Mid-sized and larger organizations require a PR before a PO so spending is approved before commitments are made. Very small businesses often skip the PR and issue a PO directly.

Templates

Use the free purchase order template for the external document, and our PO vs invoice guide for the full purchase-to-pay flow.

Frequently Asked Questions

What is the main difference between PR and PO?

A PR is internal (employee → company); a PO is external (company → vendor). The PO is the legally binding commitment to buy.

Can a PR become a PO?

Yes — once approved, procurement converts the PR into a PO and sends it to the vendor.

Do small businesses need a purchase requisition?

Usually not. PRs add value when multiple approval levels are required before spending — common in mid-sized and larger organizations.